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The United Arab Emirates (UAE) is a tax-efficient jurisdiction for businesses. There is no personal income tax, no capital gains tax, and no withholding tax on dividends or interest payments. However, the UAE does have a corporate tax regime. The corporate tax rate in the UAE is 9%. This rate applies to all businesses, regardless of their size or industry. However, there are a few exemptions from corporate tax. These exemptions include: Businesses that are wholly owned by the UAE government or a local government entity Businesses engaged in activities regarded to be of public benefit, such as education, healthcare, and social welfare Businesses with taxable income less than a specific amount (AED 375,000 in 2023) The corporate tax in the UAE is payable on the net profits of a business. Net profits are calculated by deducting all allowable expenses from gross income. Allowable expenses include costs such as salaries, rent, and depreciation. Corporate tax is due on a quarterly basis. Businesses must file a corporate tax return with the UAE tax authorities within 30 days of the end of each quarter. The introduction of corporate tax in the UAE is a significant development. The UAE’s low tax rate, on the other hand, ensures that it remains a particularly enticing destination for multinationals.